By Dave Lindorff

Reports are starting to appear suggesting that laid-off or
underemployed Americans, and the long-term unemployed, are losing
patience with the Obama administration’s and Congress’ economic
stimulus plan, which thus far has not done anything to arrest the
growth of unemployment, now at close to 20 percent of the US workforce,
at least as unemployment used to honestly be counted in the 1970s and
early 1980s.

While millions of jobs have been lost since the beginning of this
year alone, the number of jobs that have been created as a result of
the Obama administration’s signature $780-billion stimulus spending
package is under 150,000—a far cry from the 3.5 million that were
promised when the bill was being put before Congress.

There has been a lot of hype from Washington sources, dutifully
reported with little analysis or criticism in the corporate media,
suggesting that the recession is bottoming out. One example was a
report last week that the number of people receiving unemployment had,
for the first time in six months, dropped slightly. Unmentioned was the
hard reality that the reason for this drop was that many laid-off
workers are now reaching the end of their 26 weeks of unemployment
benefits in states that do not offer any extended benefits program. On
inspection, that is hardly good news.

There is also a mantra, trotted out regularly by administration
officials, that unemployment figures are a “lagging indicator,” and
thus are no indication that the recession is continuing to worsen. The
problem with this sleight-of-hand is that unemployment itself, when it
is rising rapidly as it has been now for a year, is a cause of
deepening recession. When one in five workers is unemployed or
unwillingly underemployed, that represents not only a huge drop in
consumer demand for everything from basic necessities to luxuries, but
also a huge dark cloud of anxiety that hangs over most of the rest of
the public, leading everyone to cut back on their spending, thus
dragging down the economy further.

But there is another factor at work, which is not getting much
attention, and that is the negative role being played by employers,
both public and private, in worsening the recession and undermining the
stimulus effort, such as it is, by actually using economic crisis as an
excuse to further attack and undermine workers and their incomes.

Take Temple University, where I live. The university, a largely
publicly-funded institution, has received $10 million in federal
stimulus funds, largely replacing the state funding that it lost when
the state cut back on its educational budget, and though those funds
were specifically intended by Congress to be used to improve student
achievement and to put people to work quickly, Temple, which has also
seen student admissions and tuition revenues increase during the
recession, has done the opposite—laying off staff, including
departmental staff and other personnel. The university for the past
year has also been engaged in a classic union-busting campaign against
one of its staff unions, which has been working 0n an expired contract
for a year, and its faculty union, which has been working on an expired
contract since last October. The school last year hired an outside law
firm, Ballard Spahr Andrews & Ingersoll, that on its website touts
its expertise in “union avoidance,” to handle the school’s “bargaining”
with faculty.

In this, Temple is hardly alone. Across the country, companies and
public institutions have been taking brutal advantage of the economic
crisis as an opportunity to attack their workers, slashing employment,
demanding pay cuts (the New York Times, for example, has cut
employee paychecks by 5%), reducing long-held benefits, and generally
contributing to the impoverishment and insecurity of the broader
American workforce. According to a recent report, 29 percent of
employers who had historically been offering their employees a match
for their own contributions to 401(k) retirement plans have eliminated
that matching money over the last year.

These cutbacks and layoffs are bad enough when made by private
firms, many of which are still quite profitable and which have
benefited over the years and recently from tax incentives aimed at boosting
employment, but they are particularly obscene when they are made by
institutions that are receiving public stimulus money, like schools,
public transit agencies, and state and local governments. Indeed, it’s
probably the case that much of the potential stimulus of the
taxpayer-funded stimulus plan has been negated by job cuts and pay cuts
being made by the state and local entities that have received the bulk
of that money. If a state, for example, uses $50 million in stimulus
funds to repair a bridge, in the process providing jobs to perhaps 100
construction workers, and then lays off 200 state workers, that
stimulus money is completely wasted in terms of boosting the economy.

So far, most of the frustration and anger over this undermining of
the economic stimulus program is coming from the unemployed. Taxpayers,
who will end up paying for this stimulus (all of which was borrowed
money) in future years, have so far not raised a fuss, perhaps because
they have not gotten the news that employers are busy undermining the
program. That could change if unemployment, as expected, keeps rising
inexorably. Maybe at that point people will start demanding that their
taxes be used by the federal government to directly employ people,
instead of trusting employers to pass it through to their workers, or
that at a minimum, organizations receiving stimulus program funds be
barred from laying workers off or cutting their pay.

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DAVE LINDORFF is a Philadelphia-based journalist. His latest
book is “The Case for Impeachment” (St. Martin’s Press, 2006). His work
is available at www.thiscantbehappening.net